December 2024: Five must-reads for investors

Wow, what a year! ? ?

2024 has been momentous for IIGCC — we hosted 80 online and in-person events, published 40 resources and welcomed many new members and followers. Your support has been instrumental in helping us drive meaningful progress on climate and nature action. Thank you ??

Reflecting on the last 12 months and looking ahead at our recent AGM, IIGCC CEO, Stephanie Pfeifer, said: "As the transition to a decarbonised global economy takes shape, the competition is on. How investors navigate this is up to them — but for IIGCC, we will continue to provide the tools, resources, frameworks, initiatives and more to support our members."? ?

Our annual report has all the details.

?? Read all about our work in our 2024 annual report. But first, here are our top five for December:??

Investing in climate solutions: Renewable energy generation infrastructure?

• We published guidance to support investors considering climate solutions investments, specifically renewable energy generation infrastructure.?

• This paper establishes guidance for investors to consider in their approach to quantifying their contribution to scaling renewable energy generation within the infrastructure asset class.??

• It provides guidance to assist investors in investing in climate solutions and is designed to be consistent with the global goal established at COP28, which is to triple renewable installed capacity by 2030.?

COP29: Outstanding questions, progress made and opportunities ahead?

• Developed countries committed to channel USD 300 billion a year to developing countries by 2035, a figure far short of the USD 1.3 trillion required.?

• The presidencies of COP29 and COP30 must spend the next year brainstorming ways to bridge this finance gap ahead of the next edition of this climate conference.?

• The scope of these conversations presents investors with the opportunity to engage with private finance actors? to help meet the objective.?

Three takeaways to support bondholder stewardship with banks?

• Investors in our Bondholder Stewardship working group sat down with selected banks to explore opportunities to align debt markets with climate objectives.?

• Data from the London Stock Exchange Group (LSEG) has shown $5.5 trillion in outstanding carbon-intensive debt as of June 2023, highlighting the opportunities available for net zero stewardship in the debt market.??

• The discussion referenced our recent paper, Unlocking the Net Zero Potential of Unlabelled Debt, highlighting the vital role that bank debt capital markets play in helping issuers develop green bond frameworks.?

Supplementary implementation guidance: Private Markets Infrastructure?

• This latest document adapts Net Zero Investment Framework recommendations for application, specifically in private markets investment when dealing with the infrastructure asset class.?

• It summarises investor experiences from implementing ‘Guidance for Infrastructure Assets’ to build on its initial success.?

• These insights aim to address questions raised during implementation and to better facilitate its use and adoption.?

Physical Climate Risk Divergence: PCRAM for investors?

• Our latest paper outlines how Real Estate and Infrastructure investors could integrate Physical Climate Risk Assessment Methodology (PCRAM) into existing processes.?

• It proposes ways investors could consider integrating PCRAM into existing investor processes, potentially moving from a sole risk management lens to a value creation exercise.??

• This publication builds on our August 2024 report, PCRAM in Practice, which highlighted case studies demonstrating the potential of PCRAM to assess physical climate risk (PCR) at the asset level.????

?? If you found this useful, find out more about how to join us to be the first to hear about new resources, guidance and investor support. Visit iigcc.org for more information.